Interdealer broker ICAP's US subsidiary has agreed a settlement with the Securities and Exchange Commission (SEC) following an industry wide investigation into markets for certain fixed income securities. ICAP says that it has not admitted or denied any wrongdoing.

The investigation has taken four years and included the concept of "non-intentional fraud" after five of ICAP's US Treasury brokers posted "flash" trades between 2004 and 2005.

It also involved the activities of two ICAP dealers on the Mortgage Backed Securities desk between 2005 and 2008. the two people were subsequently sacked.

ICAP has agreed to enhance the quality of its 'control environment'. This includes the greater formalisation of its broking practices, enhanced operational, risk and compliance controls, improved training and monitoring programmes, revised policies and procedures, and the hiring of additional experienced managers in various support roles.

ICAP will also appoint an independent consultant to review the improved control environment that is now in place".

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